Audit Reports
West Bengal
Report of 2007 - Financial Audit on Panchayati Raj Institutions, Government of West Bengal
Overview
The report contains six chapters. The opening chapter contains an overview of the Panchayat Raj Institutions (PRIs) in the State. Chapter-2 highlights the deficiencies in accounting procedures. Chapter-3 consists of audit observations on implementation of schemes. Chapter-4 relates to performance reviews while Chapter-5 contains audit findings on execution of works and procurement of supplies. Other miscellaneous issues are grouped together in Chapter-6.
There are 17 Zilla Parishads (ZPs), one Mahakuma Parishad (MP)(with all the powers and authority of the Zilla Parishad) for Siliguri SubDivision,341 Panchayat Samitis (PSs) and 3,354 Gram Panchayats (GPs) in the State. The Panchayat and Rural Development Department (P&RDD) headed by a Principal Secretary exercises administrative control over the PRIs.The major audit observations are as under.The PRIs continue to be overwhelmingly dependent on grants from the Central and State Governments. Their 'own source revenue' constituted only three per cent of the total revenue during 2007-08.The P&RDD did not have the information on funds received by the PRIs during 2005-08 from various line departments of the State Government and also information regarding receipts and expenditure under important sectors like education, health, nutrition, social forestry etc. that may be amenable to sectoral analysis of the State Government.Difference of Rs 17.33 crore in the closing balance as at 31 March 2007 and opening balance on 1 April 2007 was existing in the accounts for ZPs.
Audit of transactions of 3,348 GPs, 181 PSs, 17 ZPs and one MP showed instances of financial procedures not being followed like non-preparation of accounts and budgets, direct appropriation including theft/defalcation/losses etc. as detailed below.Twenty nine GPs did not prepare annual accounts for the year 2006-07.Seventeen GPs did not prepare their budget and unauthorisedly incurred expenditure of Rs 7.35 crore during 2006-07 without any budget allocation. Four PSs incurred expenditure of Rs 10.47 crore without preparation of annual accounts during 2004-07 against receipts of Rs 17.78 crore.Ninety GPs incurred expenditure of Rs 73.34 lakh during 2006-07 out of the revenue collected by them without depositing the money into their respective savings bank accounts in contravention of the Rules.There was unreconciled difference of Rs 2.26 crore in 99 GPs,Rs 4.01 crore in 20 PSs and Rs 2.32 crore in two ZPs due to non-conducting of monthly reconciliation of balances in Cash Book and Pass Book during 2006-07.The lapse was fraught with the risk of misappropriation of funds going undetected.In 3,185 GPs, 71 per cent of the total demand for taxes, duties, rates,fees and tolls amounting to Rs 66.89 crore remained unrealised at the end of the year 2006-07.This highlights inadequate controls and monitoring mechanism in the PRIs resulting in loss of potential revenue.Instances of loss of cash, foodgrains and office assets were noticed in 24 GPs and four PSs which indicated inadequate controls and safeguards.